NQ annuity withdrawal

Financial Planning - Financial planning in general. (Moderated) 

  Yahoo!   Google   Windows Live   del.icio.us   digg   Netscape

Subject Author Date NQ annuity withdrawal HW \"Skip\" Weldon 02-19-2008  Re: NQ annuity withdrawal Ernie Klein 02-21-2008
Posted by HW \"Skip\" Weldon on February 19, 2008, 5:07 pm Client age 63 wants to take a one-time partial withdrawal from a non-qualified annuity. The present annuity contract value exceeds basis by more than the proposed withdrawal. I seem to remember that all withdrawals from a NQ annuity in excess of basis are considered to be 100% taxable until the current annuity contract value equals basis. Is that correct? Note: I realize there are a host of other issues - surrender charges, how the contract is invested, etc. We have those issues covered. What we are curious about is the income tax consequence on the partial lump-sum withdrawal. Thanks. -HW "Skip" Weldon Columbia, SC -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Posted by Ernie Klein on February 21, 2008, 6:16 pm > Client age 63 wants to take a one-time partial withdrawal from a > non-qualified annuity. The present annuity contract value exceeds > basis by more than the proposed withdrawal. I seem to remember that > all withdrawals from a NQ annuity in excess of basis are considered to > be 100% taxable until the current annuity contract value equals basis. > Is that correct? > > Note: I realize there are a host of other issues - surrender charges, > how the contract is invested, etc. We have those issues covered. > What we are curious about is the income tax consequence on the partial > lump-sum withdrawal. Thanks. You would probably be better off asking this tax question in the moderated tax group: misc.taxes.moderated -- -Ernie- -------------------------------------- Misc.invest.financial-plan is a moderated newsgroup where Moderators strive to keep the conversations on-topic for financial planning. Other posting guidelines include a request for brevity and another for trimming posts to which we respond. For all of the other tips and suggestions, see "FROM THE MODERATORS: Posting to misc.invest.financial-plan", a weekly post now on the Newsgroup. Similar Threads Posted Annuity with lifetime withdrawal and Guaranteed Benefit? November 20, 2007, 5:07 am old retirement acct: total withdrawal vs higher annuity? November 14, 2008, 12:52 pm roth IRA withdrawal March 31, 2007, 12:20 pm withdrawal process from Roth IRA March 26, 2007, 11:03 am 401 (k) early withdrawal penalty calculation November 8, 2006, 12:43 pm Effect of Buffer on Withdrawal Rates December 4, 2006, 10:34 am Optimizing Social Security Benefit withdrawal February 9, 2007, 12:34 pm Fidelity study on retirement income and withdrawal rates April 8, 2007, 3:15 pm Annuity Help January 6, 2008, 8:13 am Put 401K into an Annuity? November 21, 2006, 9:53 am